Having bought a couple drop-shipped goods from China, I, for one, won't miss it. The most noticeable effect I have seen is scammy listings on eBay and Amazon, unresponsive sellers, and unreliable delivery time.
I have not seen any arguments of the form "but the price of X will go way up."
I’ve had great success getting all sorts of stuff delivered straight from China (usually sold through eBay). As long as you don’t need it next week (or sometimes next month), you can save a ton. Compared to domestic sellers who want to gouge me $7.99 to ship a 5 square inch bag of diodes 50 miles.
This could still be a problem if those sellers move to Fulfillment By Amazon. My understanding (and I'd like to be corrected if I'm wrong) is that Amazon's current policy is to commingle products with the same SKU from different sellers, so it will become even more likely to pay for the original and get the knockoff.
Nothing the parent comment said has anything to do with commingling of inventory. I get that HN likes to complain about FBA, but pretending inventory commingling has any relation to unresponsive sellers or long delivery times is misleading and stupid.
I may not have phrased it well, but I wasn't implying that the original poster would have the same problems. I was just saying this change -- which I still think is fair -- may not be only upside for American customers and sellers, if current policies don't change.
I have not seen any arguments of the form "but the price of X will go way up."